The mortgage delinquency rate decreased to 3.93% in Q2 2025, below the historic average of 5.21%. Foreclosure actions started fell to 0.17%. Conventional loan delinquencies performed well, contrasting with increased government delinquencies. Earlier-stage delinquencies saw a decline, whereas serious delinquencies, defined as those 90 or more days delinquent, increased. The late-payment rates dropped across 30, 60, and 90-day delinquencies. The foreclosure inventory rate slightly decreased but remains higher than a year prior. States like Mississippi and North Dakota experienced significant delinquency increases.
The delinquency rate dropped by 11 basis points from Q1 2025, signaling a positive trend. The share of loans started in foreclosure decreased by 3 bps to 0.17%.
While overall mortgage delinquencies are relatively flat compared to last year, changes in composition were noted: earlier-stage delinquencies fell while serious delinquencies increased in Q2 2025.
The foreclosure inventory rate sits at 0.48%, slightly down from Q1 but 5 bps higher than last year, indicating mixed trends in foreclosure actions.
Rising balances and delinquencies in student, credit card, and auto loan debt may lead to concerns over future delinquency increases.
Collection
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